Mr Abbott says while many people will be devastated by the decision, there will be better days ahead.

"There will be time to manage this transition and obviously Toyota, as a very responsible, honourable business, will do its best to ensure that its workers are not left in the lurch," he told AM.

"The important thing... is not just to focus on the problem but to focus on the quality of these workers, the fact that they are highly skilled people, adaptable people, people who have done well over many years and continue to do well in other roles.

"These are adaptable people in a country with a proven record of flexibility and creativity."

MPs are gathering for the year's first session of Federal Parliament today, with jobs and industry assistance high on the agenda.

Dr Napthine says he will discuss an assistance package with the Prime Minister to assist workers and their families, as well as their job prospects.

"Deputy Premier Peter Ryan and I will... meet directly with the PM to discuss the need for a comprehensive adjustment package from the Federal Government to assist affected workers at Toyota and across the supply chain, and to also look at opportunities for job-creating infrastructure in Victoria," he said.

Workers could do without this

"The job of government is to sit down and carefully and methodically and purposefully sought out what is best done in difficult situations.

"The best thing that we can do, given that these jobs aren't being lost tomorrow, next week, next month or even next year, is to ensure that the fundamentals are right.

"That's where the Commonwealth and the state can engage in a stronger partnership to look at things like shovel-ready infrastructure, which can kick off sooner, which will leave Victoria a stronger place."

The Prime Minister added the focus should be on what is profitable.

"The sorts of things that I'll be talking to Premier Napthine about today is what infrastructure projects, for instance, does the Victorian Government have in addition to other projects that we are already as a Commonwealth committed to, which might be funded in the medium term, so that the people of Victoria are confident that they can face the future and that their state is going to be in a better state in five years time than it is now."

The Liberal Government don't give a stuff about car manufacturing... They don't even fight for jobs in Australia.

"The advanced, successful, technologically proficient industries that we need to have will be created when there is the freedom to get on with the job, and you do not have so much of taxpayers' resources being diverted to prop up industries," he said.

Dave Oliver from the Australian Council of Trade Unions (ACTU) says the Federal Government should act to provide support to help the component sector diversify.

"I've heard the PM talking about jobs go and jobs will come. The PM in the lead-up to the election said he will create another one million jobs," he said.

"Unfortunately we've seen many jobs disappear. We are dealing with a bleak future for SPC as a result of the Government not wanting to support that company.

"Now we've seen Ford, Holden and Toyota go. We have been calling on governments to provide support to attract investment into this country.

"There are opportunities in other sectors. The technology sector - but the Government has scrapped the Clean Energy Finance Corporation, which would have positioned the manufacturing sector to get access to that $6 trillion global industry."

Altona workers face uncertain future

Many Toyota workers at Melbourne's Altona plant say it is going to be tough for them to find new work.

They say they knew their jobs were under a cloud, but did not expect they would lose their jobs so soon.

Toyota worker Nigel Walker this morning said a lot of people will soon be looking for employment.

"It was in the books and a lot of companies are closing down. The Government walked away from everything. They say everything is going to be OK, but it isn't," he said.